Covington noted combined scale comes without racking up big debt. Instead, the $1.3 billion deal will be in stock. Nash Finch shareholders will receive a fixed ratio of 1.2 shares of Spartan Stores common stock for each share of Nash Finch common stock they own.

While the boards of both companies unanimously approved the deal, it still must be approved by shareholders.

The deal is expected to be completed by the end of 2013 and will make Nash Finch a wholly-owned subsidiary of Spartan Stores. Eidson pegged integration costs at $26 million over three years.

He added the combined company plans to continue issuing a quarterly dividend, which will initially be set at 48 cents per share on annualized basis.

Eidson said the merger will create a larger, more balanced company with a broader customer base and the geographical reach across multiple food and distribution businesses.

"We'll have a foundation of $7.5 billion in combined revenue and ... a strong balance sheet to support continued growth initiatives including pursuing potential acquisitions, paying an attractive dividend and reducing our debt levels," Eidson said.

Eidson said he will detail more of the estimated $50 million in annual cost savings in the next couple of months, but noted some of it will come from eliminating duplication in the back office.

He added that he expected the Federal Trade Commission to approve the deal.

"This industry is highly competitive," said Eison. "We'll go through the process but we don't expect there will be an issue."

Eidson noted there are no plans to change Nash Finch's MVD, a Norfolk, Va.-division that supplies military commissaries across the country. He thinks that business has room to grow and gain market share.

"We are really excited to operate a business that has three very strong legs to the stool," said Eidson. "It is a very balanced business. Approximately 40 percent of that volume is in the whole sale grocery business, 30 percent in retail and 30 percent in military."

Replay of the call will be available on both companies' websites for about 10 days.